Additional Case 9.1 Ron, the CEO at CableNet, Wants to Invest in Career

question 87

Multiple Choice

Additional Case 9.1
Ron, the CEO at CableNet, wants to invest in career development because he is concerned that the firm is not prepared to meet future needs and challenges. Rudy, the operations manager, states that CableNet has already invested significantly in employee training, and a career development program would be a costly duplication. Rudy produces a recent productivity and quality study that shows significant improvement among employees to support his assertion that a development program is unnecessary. Charles, an IT manager, states that most supervisors currently discuss career options with their subordinates as part of the management process. Charles asserts that managers are taking care of their employees well enough and that nothing else is necessary. Tanya, the HR director, suggests that assigning employees to various jobs would give them a wider base of skills at a minimal expense. She asserts that an active career development program would help the company with EEO-related matters, which are a concern to her. The workforce is about 30% female and 45% minority, but upper management is 100% Asian-American male.
-Refer to Additional Case 9.1.Which of the following best describes Ron's primary concern?

• A) Ensuring that the organization has a diverse and well-trained staff
• B) Preparing employees for anticipated management openings
• C) Helping employees balance their work and personal lives
• D) Matching employee strengths and interests

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Definitions:

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product costing.

Unit Product Cost

The total expense incurred to produce, store, and sell one unit of a product.

Traditional Costing

A costing method that allocates overhead based on a single predetermined rate.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, improving accuracy in product costing by identifying cost drivers.